Giang Nguyen highlighted that scaling a real estate portfolio revolves around three key elements: deals, money, and people—what she refers to as the "triangle." Troubleshooting one of these areas is essential to grow or begin a project. For Giang, the focus is often on securing funding, either by raising her own capital or partnering with others. This led her to multifamily properties of five units or more, which provided the cash flow she needed.
Why Choose 5+ Unit Multifamily Properties?
She explained her preference for multifamily properties with five or more units. Unlike smaller properties (2-4 units), whose values depend on market comparables, 5+ unit properties are valued based on their income (Net Operating Income or NOI). This shift gives investors more control over property value, allowing them to increase income and reduce expenses to boost NOI. This approach not only adds value to the property but also makes scaling more predictable and sustainable.
Biggest Mistake in Real Estate
Giang shared her biggest mistake—a $26,000 single-family property that seemed like a great deal but turned into a costly venture. Half of the property was essentially gone, requiring a complete rebuild and new construction rules, which significantly increased costs.
Her key lessons: Cheap doesn’t always mean a good deal, and it’s crucial to stay within your area of expertise. While she excelled in complete rehabs, new builds were outside her skill set, costing her valuable time and money.
Biggest Win: The 42-Unit Online Auction Deal
Her biggest success came when she closed on a 42-unit property through an online foreclosure auction—a first for her. The deal was particularly challenging due to the tight 35-day closing requirement and the need to prove cash availability upfront. Unlike traditional syndications with extended timelines, this auction required a 10% deposit within 24 hours of winning the bid, and it was non-refundable from day one.
This deal was a significant milestone for Giang, showcasing her ability to navigate new, high-pressure situations and successfully close in record time.
Giang Nguyen’s Approach to Building a Winning Team
She revealed that building a strong team has been a cornerstone of her success in real estate. As projects expand, there's always space for others to contribute by leveraging time, money, and experience. Her approach to team-building starts slow—she recommends holding "mini-masterminds" with potential partners to understand each other’s strengths and challenges before diving into a partnership.
She also places great value on referrals, believing that "rockstars know rockstars." By asking high-performing team members for recommendations, she’s successfully expanded her network with trusted, like-minded individuals.
Conclusion
Giang Nguyen’s journey offers valuable lessons for those looking to scale their real estate portfolios. From understanding the importance of income-based property valuation to navigating tight timelines and building strong teams, her experiences highlight key strategies for success.
By learning from her mistakes, leveraging expertise, and carefully cultivating partnerships, anyone can set themselves up for long-term success in real estate.
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